Report: Job growth shifting to Seacoast, Tri-Cities

DOVER — Economic activity and job growth is shifting from New Hampshire’s largest cities to the Seacoast-Tri-Cities region, according to a recent report.

While Manchester and Nashua are still home to more high-tech businesses than the Seacoast, the report by Brian Gottlob of Dover-based PolEcon Research finds “more key developments and new companies in technology and manufacturing are occurring in the Seacoast.”

“There was a time when the Greater Nashua and Manchester areas were the technology and manufacturing center of New Hampshire and almost all important developments in manufacturing and technology industries occurred there,” Gottlob said.

“These regions remain the technology leaders by numbers, but more key developments and new companies in technology and manufacturing are occurring in the Seacoast,” he continued.

This trend, which began about a decade ago, appears to be accelerating. Gottlob finds several factors are responsible for the shift, including the successful Pease International Tradeport, which is home to many large businesses, and proximity to the University of New Hampshire.

There’s also an aerospace industry developing in Rochester around Safran Aerospace Composites and Albany Engineered Composites, which have partnered to build advanced composite parts for high-tech jet engines. The companies employ hundreds of people and will add new jobs through the end of the decade.

Susan Siegel, an Albany spokeswoman, said the company could have located anywhere. For instance, it already had facilities in Wisconsin, South Carolina or Texas. Safran, too, has numerous U.S. locations.

“The reality is we could have relocated anywhere in the U.S.,” Siegel said, adding the company narrowed its search to the Seacoast region before ultimately choosing Rochester.

“But to Albany’s management and board, the key was, where could we quickly establish a strong and lasting pool of talent that would allow us to build and sustain a technology edge,” Siegel said.

Here’s another factor: The Tri-Cities-Seacoast region is attracting far more college graduates than other parts of the state.

Since 1990, Portsmouth has seen a 21 percent increase in the number of people 25 years or older with a four-year college degree. Dover’s share grew by 15 percent, while Somersworth’s increased by nearly 12 percent.

Meanwhile, over the same period, Manchester experienced a 6.1 percent increase in college grads 25 and older, while Nashua had a 4.5 percent increase. Rochester had a 3.3 percent increase.

One reason for the influx of educated people? The region’s high standard of living.

“I can tell you that the Seacoast, and New Hampshire in general, presents a very attractive quality of life and it is an asset when we are recruiting candidates from outside the area to fill technical and engineering positions that require very specialized skill sets,” Siegel said.

Gottlob expects even more economic expansion as more people with college degrees choose to live in the Seacoast.

Carmen Lorentz, director of the N.H. Division of Economic Development, agrees the Seacoast is well-positioned for continued growth.

She said cities are working together to develop an aerospace cluster, which is anchored by companies such as Safran and Albany International, and other high-grown sectors.

Other major employers include Sig Sauer, which is headquartered at Pease but recently announced expansion plans in Dover, and Turbocam International, in Barrington.

“There is a lot of positive stuff going in that region, absolutely,” Lorentz said. “They are definitely becoming known as a creative economy hub in the state. There are others of course, but the key message is there is a lot of positive growth going in high tech and creative industries in that area.”

Mike Joyal, Dover’s city manager, said he’s seen evidence of the shift described in Gottlob’s report. The Enterprise Park business park is basically full, and the City Council is exploring building a new facility aimed at attracting larger businesses.

Although Gottlob’s research is mostly positive, the Seacoast region apparently lags behind the rest of the state in terms of professional and business services jobs. One reason, he said, is that many large law firms, ad agencies and engineering companies prefer to locate in the state’s largest city.

The Seacoast area also has a relatively small share of N.H. retail employment, the report says.

Still, the broader picture is reassuring. In fact, Gottlob notes the Seacoast is thriving despite a creeping cost of living.

“If being the ‘cheapest’ place to live were the key, the Seacoast would not be thriving. Rather, it is the combination of services and amenities at relatively more affordable price … that has been attractive.”